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CGT calculation on selling main residence- not so starightforward case
Bob_the_builder
Posts: 7 Forumite
I have taken an offer on my house which I have been renting out since August 2012. I am going to try and list all the information relevant to try and get a rough estimation of CGT if any
July 1997- buy piece of land for £94,000 ( jointly with my wife)
January 2000- move into house after completing the build. Build cost was approx 135,000
Total cost of property 229,000
Selling price 650,000
Original mortgage 135,000
Outstanding mortgage approx 97,000
I've just had a thought when we moved into the house January 2000 it was not completed. We moved in because we was short of money. There was no driveway,landscaping, only 1 bathroom out of 3. No tiling done etc. This was done over the course of the next 2 years at a cost of around 70,000. Taking the total build cost to around the 300,000 mark. Unfortunately I don't hold the receipts for this any longer as we had made our VAT reclaim in 2000 and your only allows to reclaim once.
Would they base the total cost of our main residence on this figure?
August 2008 I move abroad for work I have been there since
August 2012 my wife joined me but remained uk tax resident until August 2013 my wife went back and fourth to uk for first 12 months.
Rented out house August 2012- August 2013 then again from November 2013-September 2015
I also have £9100 loss that can be used against any CGT tax owing by myself, plus both myself and my wife's 2015/16 allowance
This house was my main residence until Aug 2008 and my wife's until August 2012. The year Aug 2012-Aug 2013 my wife went to and from the uk she stayed with her parents.
Are we liable for any CGT?
Am I liable for any CGT?
Is my wife liable for any CGT?
July 1997- buy piece of land for £94,000 ( jointly with my wife)
January 2000- move into house after completing the build. Build cost was approx 135,000
Total cost of property 229,000
Selling price 650,000
Original mortgage 135,000
Outstanding mortgage approx 97,000
I've just had a thought when we moved into the house January 2000 it was not completed. We moved in because we was short of money. There was no driveway,landscaping, only 1 bathroom out of 3. No tiling done etc. This was done over the course of the next 2 years at a cost of around 70,000. Taking the total build cost to around the 300,000 mark. Unfortunately I don't hold the receipts for this any longer as we had made our VAT reclaim in 2000 and your only allows to reclaim once.
Would they base the total cost of our main residence on this figure?
August 2008 I move abroad for work I have been there since
August 2012 my wife joined me but remained uk tax resident until August 2013 my wife went back and fourth to uk for first 12 months.
Rented out house August 2012- August 2013 then again from November 2013-September 2015
I also have £9100 loss that can be used against any CGT tax owing by myself, plus both myself and my wife's 2015/16 allowance
This house was my main residence until Aug 2008 and my wife's until August 2012. The year Aug 2012-Aug 2013 my wife went to and from the uk she stayed with her parents.
Are we liable for any CGT?
Am I liable for any CGT?
Is my wife liable for any CGT?
0
Comments
-
It actually looks pretty straightforward.
As non-residents (in the UK) you and your wife come under the new regime but, as the property was your main home at some time, no CGT will be due as long as you sell before 5 October 2016.
See Private Residence Relief here.
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property0
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